…Does not stay mainly in the plain. Bloomberg reports that European officials
travel to Washington this week seeking a bigger global war chest to combat the
debt crisis as Spain’s government battles to quell renewed market turmoil over
its finances.
Three weeks after European leaders unveiled emergency euro-
area funding exceeding the symbolic $1 trillion mark, concerns about Spain’s
position have ratcheted the nation’s borrowing costs to the highest levels this
year. Crisis-fighting resources will dominate talks at the International
Monetary Fund’s spring meeting in Washington from April 20-22.
While the U.S. insists that Europe can overcome the crisis
using its own financial firepower, euro-area officials say they’ve done enough
to trigger additional global assistance. The urgency was underscored last week
as Spanish and Italian yields jumped, challenging assumptions among the
region’s leaders that the worst of the fallout was behind them.
Spain’s 10-year bond yield climbed 19 basis points last week
to 5.98 percent, while similar-maturity Italian yields increased seven basis
points to 5.52 percent. The euro declined to a one-month low against the dollar
today. …
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